Property Valuation
The principle of anticipation in appraisal holds that value is:
ABased solely on what was paid for the property in the past
BThe present worth of future benefits expected from the property✓ Correct
CDetermined by the current replacement cost of improvements
DSet by the local tax assessor's annual review
Explanation
The principle of anticipation states that value is created by the expectation of future benefits (income, use, appreciation). An investor buys based on what they expect the property to yield in the future, not just its current income.
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